Bitcoin ready to rebound? Analysis of May 8, 2024

Following a decline of over 23% from its all-time high, Bitcoin has recovered and is currently trading above $60,000. Together, let's examine the prospects for the price of bitcoin in the future.

The Bitcoin logo features a red and blue background with an enraged blue bull and red bear on either side. We can see each person's power bar at the top of each.
Bitcoin (BTC) market conditions

After surpassing the $60,000 barrier, bitcoin roughly reached a low of $57,000. This level was identified in the research conducted on April 27, 2024, as a bearish objective.

The latter generated enough purchasing interest to push it over its previous short-to-medium-term support level of $60,000.

When the price of the cryptocurrency hit $64,000, selling pressure was formed, and this resulted in a period of consolidation where the price ranged below this level.

Specifically, we can attest to the level's significance as a noteworthy place.

As of this writing, the price of Bitcoin is approximately $62,300. The rejection of the trend's resistance concurrent with the trend's 50-day moving average raises doubts about the trend's sustainability even though the underlying trend is still bullish.

In terms of its dynamics, we can observe that it has marginally recovered but is still poor, pointing to low interest in purchasing the parent cryptocurrency.

A keen trader and investor in the cryptocurrency space, Elie FT, worked with us to do the current technical analysis.

working as a trainer at Family Trading, a group of thousands of active traders using their own accounts that was founded in 2017.

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Open interest on BTC/USDT contracts has been comparatively steady since mid-April. This could show that buyers and sellers of Bitcoin perpetual contracts are in balance.

Regarding liquidations, they weren't all that important. It should be remembered that sales comprise the majority of liquidations. This might indicate investors' interest in purchasing, but it's clear that it's not strong enough to offset sellers' interest.

The financing rates linked to BTC/USDT contracts also exhibit a positive and negative oscillation, suggesting that the interest in these contracts is steady and in line with its underlying.

A noteworthy liquidation zone over $65,000 has been crossed by BTC/USDT, according to the heat map of liquidations during the last month. At this point, emerging short interest points to a possible downward reversal.

The cryptocurrency is currently moving towards another important liquidation zone, which lies between $62,000 and $60,000. The vicinity of $58,000 and the range between $57,000 and $56,000 are also crucial below. The regions of $65,500 and, more importantly, $67,500 over the current price are especially conspicuous.

Even more so, the region of about $71,500 merits particular consideration. The market may trigger a large number of orders if it gets close to these levels, which would raise the cryptocurrency's volatility. As a result, investors will find great interest in these places.

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